4th Sep 2013 08:40
LONDON (Alliance News) - Safestore Holdings PLC Wednesday said Frederic Vecchioli will take over as chief executive after Peter Gowers resigned to explore other opportunities, as the company also reported that it was on track to meet full-year expectations even though sales fell in the third quarter.
Vecchioli is head of the company's French business, Une Piece en Plus, the self-storage business he founded in the Paris area. The company said Gowers would stay with the company until November 1 to ensure a smooth handover even though Vecchioli takes over with immediate effect.
"With the new strategy in place and the prospects for future growth returning, now is an appropriate time for me to explore other opportunities," Gowers said in a statement.
The self-storage company reported that its French business grew revenues 5.1% in the third quarter to end-July as occupancy increased and customers paid more to store their valuables.
However, that wasn't enough to offset a 7.6% decline in revenues in the UK, where a government decision to impose VAT on self-storage from October last year is hitting revenues, even though occupancy increased. Total company sales therefore fell to GBP24.3 million in the quarter, from GBP24.9 million a year earlier.
It said it was still on track to meet expectations for its full year after the fourth quarter got off to a good start with new lets up 4.5%.
"Early signs are that our fourth quarter trading is showing signs of sustainable improvement and the board is confident that the company will deliver a result in line with our expectations for 2013 and return to growth thereafter," it said in a statement.
The company has been changing its strategy to improve its growth, attempting to win more national accounts in the UK and moving more sales online. It said national accounts in the UK were 29% up on the year and now account for 9% of UK occupancy.
The company's shares were up 1.5% at 136 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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